Although you’ll be transitioning out of your house, that does not necessarily mean going through foreclosure. Other solutions are available that may help you avoid eviction from—and the sale or auction of—the house that can occur during foreclosure.
There are some alternative options to a Short Sale which may help you to avoid a deficiency judgement against you and a bad record affecting your FICO credit score.
A- Short Sale
In a short sale, you sell your home and settle your mortgage debt for less than the amount you owe.
Generally takes less time to complete than a foreclosure, so your reported delinquency could be shorter
Credit may improve faster
You may be eligible for money to assist in relocation or Cash for Keys program ( up to 3000 dollars after vacating the house and leaving everything in good condition)
B- Deed in Lieu
If you are unable to sell your home in a short sale, there's another option.
Deed in Lieu of Foreclosure
With a deed in lieu of foreclosure, you give your property's deed to the bank instead of going through foreclosure. It's often an easier process than a foreclosure, but it will still have a negative impact on your credit.
3- HAMP Modification program.
A loan modification program introduced in 2009 to promote stability in the housing market. The Home Affordable Modification Program (HAMP) was aimed at helping homeowners who were devoting more than 31% their of gross income toward mortgage payments. Eligible homeowners can receive adjustments to the mortgage principal, interest rate or payments in order to get the percentage of income going to payments below 31%.
If the HAMP program does not get approved or you do not qualify then a Short Sale is the most appropiate alternative for you.
If you need more information please contact me
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